LONDON, April 1 (Reuters) – Global grain supplies should remain at record levels in the upcoming 2016-17 season which begins in July, the International Grains Council said on Friday.
The IGC, in a monthly update, projected world corn production would climb to 993 million tonnes, up from the prior season’s 972 million but still below a record 1.02 billion harvested in the 2014-15 season.
World wheat production was forecast to fall to 713 million tonnes from an estimated 734 million in 2015-16.
“Preliminary projections for total grains supply and demand in 2016-17 are for another year of large availabilities,” the IGC said.
Grain stocks at the end of the 2016-17 season were forecast to total 466 million tonnes, unchanged from a year earlier.
“A small drop in production is assumed with a recovery in the maize harvest outweighed by declines for wheat, barley and sorghum,” the IGC said.
“However, large beginning stocks will keep overall supplies at record levels and while consumption is seen staying strong, ending stocks could match the 29-year high of 2015-16.”
World soybean production was forecast to fall slightly in 2016-17 to 320 million tonnes from a record 323 million in the prior season while consumption was expected to climb to 327 million from 321 million, leading to a drawdown in stocks.
“After likely reaching a high in the previous season, inventories could contract in 2016-17 on falls in major exporters, albeit remaining at comfortable levels,” the report said.
